Gross dollar churn among companies with an internet go-to-market strategy saw a meaningful increase, up from 8% in 2015

By definition, non-renewal rates are higher than gross dollar churn rates. However, it is interesting to see that the non-renewal rates are also higher for shorter duration contracts.

SaaS & Tech Growth Strategy Articles

• An Applied Innovation Model
  Innovation and creativity are becoming increasingly valuable as the need for unique solutions to business problems becomes more salient. Cognitive psychologist Scott Barry Kaufman argues that the creative process can be viewed in four stages: 1. Preparation – identify the problem and perform research 2. Incubation – passive, unconscious period where innovation “percolates” 3. Illumination […]
• Personas and The “Broken Telephone” Game
  We've all played the telephone game.
• The Importance of a Business Plan
  Before you can begin putting together an effective marketing plan, it’s important to make sure you have a business plan in place. Today Andy talks about understanding the long term and short term goals and objectives of your business, before you start planning your marketing. One of the things I wanted to talk about today […]
• Accelerating Your B2B Sales Growth with Free Promotion
  Accelerating Your B2B Sales Growth with Free PromotionWhile every business is different, they all have the same goal: to get sales. The best businesses don’t stop there, though. They are interested in drastically increasing sales so that they can scale their business. And if you want your company to still be around in 10-20 years, […]
• Organization Structure Planning
  In this Insivia insight, Andy points out how important organization structure planning is to your long term goals. Unless you are a sole proprietor working alone, you team will be a vital part of your growth and success. Incorporating them into your plan will not only help them see how all of the pieces fit […]
• How To Assess Your Brand, Website, Marketing & Competitors
  There are two things required to reach a destination - first to know where you want to go, but second to also know where you stand today.
• What Type of Media is Right for Your Target Audience?
  Choosing the most suitable media type is necessary if you want to communicate your message to your technical audiences effectively. Technical audiences require a more technically detailed approach when your IT company is conveying its message to them. Use these media types to ensure that your technical audience is getting the insight you aim to […]
• Everything You Need to Know About SaaS Affiliate Programs and How to Implement it Into Your Product-Led Growth Strategy.
  SaaS Affiliate Programs: Everything You Need to Know About and How to Implement it Into Your Product-Led Growth Strategy.Generating trial users and acquiring customers for your SaaS business can be a frustrating challenge. If you're looking for new ways to grow your business, you may have heard of affiliate marketing and wondered how it can […]
• Evaluating Your Software Brand Positioning Through SWOT Analysis
  It's Strategic Planning month here at Insivia, so we're continuing our conversation about planning for next year.

SaaS + Software Stats

• Moving from $1.5 million with an eye towards $10 million in ARR is a tough a task and will take an excellent VP of sales to get you there
• Growing faster has twice as much impact on share price as improving margins
• 56% treat “Existing Customer Renewals” as high priority
• The very best SaaS businesses have a negative revenue churn rate and will have a Revenue Retention Rate of greater than 100%
• The best place to hide a dead body is page 2 of Google search results.
• The median annual contract value (ACV) was $25K, $21K, $21K, $20K in 2016, 2015, 2014 and 2013
• Internet sales strategies are the only sales method to see a decline in CAC, dropping from $0.54 to $0.42 between 2014 and 2015
• Our experiences with SaaS startups indicate that they usually start with a couple of lead generation programs such as Pay Per Click Google Ad-words, radio ads, etc
• The 2015 median revenue growth rate was 44%, while the median projected growth rate for 2016 is 48%

SaaS & Tech Growth Strategy Stats

• The average SaaS business generates 16% of its new Annual Contract Value (ACV) from upselling to existing customers
• When determining Sales Capacity, “it’s worth noting that some percentage of new sales hires won’t meet expectations, so that should be taken into consideration when setting hiring goals. Typically we have seen failure rates around 25-30% for field sales reps, but this varies by company. The failure rate is lower for inside sales reps. can be counted as half of a productive rep”
• The average SaaS company spends just 6 hours determining their pricing strategy
• Revenue per employee has been steadily increasing in SAAS companies. It serves as a great longitudinal measuring stick to understand the increasing or decreasing efficiency of the business
• In 2017, Foxconn Technology Group achieved a net income of 135.37 billion New Taiwanese dollars, the equivalent to approximately 4.55 billion U.S. dollars.
• Companies with longer contracts (2+ years) reported the lowest annual unit churn
• Google only has a 30 percent female workforce
• Because of the losses in the early days, which get bigger the more successful the company is at acquiring customers, it is much harder for management and investors to figure out whether a SaaS business is financially viable.
• SaaS organizations are now operating in over 100 countries